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Martha B's has total assets of $1,810. These assets are expected to increase in value to either $1,900 or $2,400 by next year. The company
Martha B's has total assets of $1,810. These assets are expected to increase in value to either $1,900 or $2,400 by next year. The company has a pure discount bond outstanding with a face value of $2,000. This bond matures in one year. Currently, U.S. Treasury bills are yielding 5.5 percent. What is the value of the equity in this firm?
$7.89
$6.67
$7.08
$6.98
$7.24
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